119-hr1908

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1908 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 1908

 To prohibit stock trading and ownership by Members of Congress and 
 their spouses and dependent children, and for other purposes.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 March 6, 2025

 Mr. Burchett introduced the following bill; which was referred to the 
 Committee on Financial Services, and in addition to the Committees on 
Agriculture, House Administration, and Ways and Means, for a period to 
 be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
 committee concerned

_______________________________________________________________________

 A BILL

 To prohibit stock trading and ownership by Members of Congress and 
 their spouses and dependent children, and for other purposes.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``End Congressional Stock Trading 
Act''.

SEC. 2. BAR ON STOCK TRADING AND OWNERSHIP BY MEMBERS OF CONGRESS AND 
 THEIR SPOUSES AND DEPENDENT CHILDREN.

    (a) 

=== Definitions. ===
-In this section:

    (1) Commodity.--The term ``commodity'' has the meaning 
 given that term in 

section 1a of the Commodity Exchange Act (7 
 U.S.C. 1a).

    (2) Dependent child.--The term ``dependent child'' has the 
 meaning given that term in 

section 13101 of title 5, United 
 States Code.

    (3) Diversified.--The term ``diversified'', with respect to 
 an investment fund, means that the investment fund does not 
 have a stated policy of overly concentrating its investments.

    (4) Member of congress.--The term ``Member of Congress'' 
 has the meaning given that term in 

section 13101 of title 5, 
 United States Code.

    (5) Security.--The term ``security'' has the meaning given 
 that term in 

section 3

    (a) of Securities Exchange Act of 1934 
 (15 U.S.C. 78c

    (a) ).

    (6) Small business concern.--The term ``small business 
 concern'' has the meaning given that term under 

section 3 of 
 the Small Business Act (15 U.S.C. 632).

    (7) Widely held investment fund.--The term ``widely held 
 investment fund'' means a widely held investment fund described 
 in 13104

    (f)

    (8) of title 5, United States Code.

    (b) Divestment.--

    (1) In general.--A Member of Congress or a spouse or 
 dependent child of a Member of Congress may not own an interest 
 in or trade (except as a divestment) any stock, bond, 
 commodity, future, or other form of security, including an 
 interest in a hedge fund, a derivative, option, or other 
 complex investment vehicle.

    (2) Implementation.--
        (A) Current members.--
            (i) In general.--Except as provided in 
 clause
            (ii) , an individual who is a Member of 
 Congress or a spouse or dependent child of a 
 Member of Congress on the date of enactment of 
 this Act shall complete the divestment of any 
 asset described in paragraph

    (1) by not later 
 than 180 days after the date of enactment of 
 this Act.
            (ii) Certain assets.--For an asset 
 described in paragraph

    (1) that is an interest 
 in a hedge fund, venture capital fund, or other 
 privately held complex investment vehicle, an 
 individual who is a Member of Congress or a 
 spouse or dependent child of a Member of 
 Congress on the date of enactment of this Act 
 shall complete the divestment of the asset by 
 not later than 5 years after the date of 
 enactment of this Act.
        (B) New members.--
            (i) In general.--Except as provided in 
 clause
            (ii) , an individual who becomes a Member 
 of Congress or a spouse or dependent child of a 
 Member of Congress after the date of enactment 
 of this Act shall complete the divestment of 
 any asset described in paragraph

    (1) by not 
 later than 90 days after the date on which the 
 individual becomes a Member of Congress or a 
 spouse or dependent child of a Member of 
 Congress.
            (ii) Certain assets.--For an asset 
 described in paragraph

    (1) that is an interest 
 in a hedge fund, venture capital fund, or other 
 privately held complex investment vehicle, an 
 individual who becomes a Member of Congress or 
 a spouse or dependent child of a Member of 
 Congress after the date of enactment of this 
 Act shall complete the divestment of the asset 
 by not later than 5 years after the date on 
 which the individual becomes a Member of 
 Congress or a spouse or dependent child of a 
 Member of Congress.
            (C) Divestment of assets received while a member.--
 An individual serving as a Member of Congress or a 
 spouse or dependent child of an individual serving as a 
 Member of Congress who receives any asset described in 
 paragraph

    (1) during the period of such service, such 
 as from an inheritance, shall complete the divestment 
 of the asset by not later than 180 days after the date 
 on which the individual receives the asset.
            (c) Exceptions.--Nothing in this section shall be construed to 
prevent--

    (1) a Member of Congress or a spouse or dependent child of 
 a Member of Congress from owning or trading--
        (A) a widely held investment fund, if the widely 
 held investment fund--
            (i) does not present a conflict of 
 interest; and
            (ii) is diversified;
        (B) shares of Settlement Common Stock issued under 
 

section 7

    (g)

    (1)
        (A) of the Alaska Native Claims 
 Settlement Act (43 U.S.C. 1606

    (g)

    (1)
        (A) );
            (C) shares of Settlement Common Stock, as defined 
 in 

section 3 of the Alaska Native Claims Settlement Act 
 (43 U.S.C. 1602);
            (D) a United States Treasury bill, note, or bond;
        (E) an investment fund held in a Federal, State, or 
 local government employee retirement plan;
        (F) an interest in a small business concern, if the 
 small business concern does not present a conflict of 
 interest; or
        (G) any asset described in subsection

    (b)

    (1) received as compensation from the primary occupation of 
 the spouse; or

    (2) a spouse or dependent child of a Member of Congress 
 from trading any asset described in subsection

    (b)

    (1) that is 
 not owned by the spouse or Member of Congress in the course of 
 performing the primary occupation of the spouse.
            (d) Civil Fines.--The Attorney General or the Special Counsel may 
bring a civil action in the appropriate United States district court 
against any Member of Congress or spouse or dependent child of a Member 
of Congress who engages in conduct constituting a violation of this 
section and, upon proof of such conduct by a preponderance of the 
evidence, such Member of Congress or spouse or dependent child of such 
Member of Congress shall be subject to a civil penalty of not more than 
$100,000 for each violation. The imposition of a civil penalty under 
this subsection does not preclude any other criminal or civil 
statutory, common law, or administrative remedy, which is available by 
law to the United States or any other person.

    (e) Nonrecognition of Gain.--

    (1) In general.--Paragraph

    (1) of 

section 1043

    (b) of the 
 Internal Revenue Code of 1986 is amended--
        (A) by striking ``and'' at the end of subparagraph
        (A) ;
        (B) by redesignating subparagraph
        (B) as 
 subparagraph
            (C) ;
            (C) by inserting after subparagraph
        (A) the 
 following new subparagraph:
 ``
        (B) any Member of Congress or any spouse or 
 dependent child of a Member of Congress, but only with 
 respect to a divestment of property required by the End 
 Congressional Stock Trading Act and only if, not later 
 than 60 days after the divestment of such property, the 
 individual uses the proceeds of the divestment to 
 obtain property which the individual is authorized to 
 own or trade under 

section 2
            (c) (1) of such Act, and''; 
 and
            (D) by striking ``subparagraph
        (A) '' in 
 subparagraph
            (C) , as so redesignated, and inserting 
 ``subparagraph
        (A) or
        (B) , whichever is applicable''.

    (2) Certificate of divestiture.--Subparagraph
        (B) of 
 

section 1043

    (b)

    (2) of such Code is amended--
        (A) by striking ``or by'' and inserting ``by''; and
        (B) by inserting ``, or by the applicable 
 congressional ethics committee, as defined in 

section 13101 of title 5, United States Code, in the case of 
 Members of Congress and spouses and dependent children 
 of Members of Congress,'' after ``judicial officers''.

    (3) No effect on subsequent sale of property.--Nothing in 
 the amendments made by this subsection shall be construed to 
 provide for the nonrecognition of gain with respect to the sale 
 of property obtained by a Member of Congress or any spouse or 
 dependent child of a Member of Congress with the proceeds of a 
 divestment required by this Act, as described in 

section 1043

    (b)

    (1)
        (B) of the Internal Revenue Code of 1986 (as added by 
 this subsection).

    (4) Effective date.--The amendments made by this subsection 
 shall apply to sales of property after the date of the 
 enactment of this Act.

    (f) Interpretive Guidance.--The Select Committee on Ethics of the 
Senate and the Committee on Ethics of the House of Representatives 
shall issue interpretive guidance regarding relevant terms not defined 
in this Act or elsewhere in statute.
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